Mass layoffs throughout the pandemic turned many individuals into “solopreneurs” and HoneyBook desires to assist them handle their companies.
Subscribe to the Crunchbase Daily
The San Francisco-based firm raised $155 million in Collection D funding to proceed growing its consumer expertise and monetary administration platform for service-based small companies and freelancers.
Oz Alon and his spouse, Naama Alon, co-founded the corporate with CTO Dror Shimoni after being small enterprise house owners. HoneyBook, which is accessible for a month-to-month subscription of $40, combines billing, contracts and consumer communication instruments to allow enterprise house owners to remain organized, CEO Oz Alon advised Crunchbase Information.
“We beloved what we have been doing, however not the enterprise half, which concerned responding rapidly to billing, funds and different issues when what we needed to do was run our companies,” he stated. “We began HoneyBook to unravel the group piece for small companies to allow them to put their greatest foot ahead and keep organized.”
Durable Capital Partners led the spherical and was joined by Tiger Global Management, Battery Ventures, Zeev Ventures and 01 Advisors, in addition to current traders Norwest Venture Partners and Citi Ventures. The brand new funding offers HoneyBook a complete of $248 million in venture-backed funding for the reason that firm was based in 2013, in addition to a greater than $1 billion valuation, in keeping with Alon.
“We consider the accelerated developments of self-employed enterprise development and small enterprise digitization will proceed because the financial restoration builds,” stated Henry Ellenbogen, managing associate and chief funding officer of Sturdy Capital Companions, through e mail. “With its visionary management and confirmed capability to innovate and supply distinctive options for the service-based small enterprise sector, we consider HoneyBook will drive employment, scale its enterprise and outline its business within the years forward.”
HoneyBook went after the Collection D so it might spend money on product improvement, new hires and increasing into new verticals. Alon would additionally like so as to add monetary companies instruments that prospects are asking for, reminiscent of the power to simply accept funds, entry to capital to spend money on their companies, extra management round bills, and to allow sooner/extra customized responses to prospects.
“Prior to now, companies attempt to reply inside 24 hours, however in the present day, if you happen to don’t reply in 24 minutes, you might lose a contract,” he added.
Prior to now yr, Alon acknowledged the pattern of small companies growing within the U.S. Individuals have an entrepreneurial spirit, so when folks misplaced jobs, they created a job, he stated.
All of that job creation led to the corporate experiencing a tripling in annual recurring income and a greater than doubling of latest subscribers within the U.S. and Canada up to now yr. On the similar time, members have booked greater than $1 billion in enterprise on the platform up to now 9 months, Alon stated.
“Reaching a $1 billion valuation is a testomony to how traders are wanting on the group and the potential of our enterprise,” Alon stated. “Traders noticed these companies by way of the previous yr and the way resilient they have been. We’re amazed by the expansion up to now yr. We’re nonetheless seeing developments happening and consider we are going to double once more subsequent yr.”
Function picture of HoneyBook co-founders Dror Shimoni, Naama Alon and Oz Alon, and inset screenshot courtesy of firm.
Blogroll illustration: Li-Anne Dias
Keep updated with latest funding rounds, acquisitions, and extra with the
Crunchbase Every day.
— to news.crunchbase.com